If the members or the CD or creditors approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application u/s 230 of the Companies Act, 2013 before the AA – M/s. C. Mahendra International Ltd. Vs. Shri Naren Sheth & Anr.-NCLAT
The liquidator is required to act in terms of directions of the Appellate Tribunal and take steps under Section 230 of the Companies Act. If the members or the ‘Corporate Debtor’ or the ‘creditors’ or a class of creditors like ‘Financial Creditor’ or ‘Operational Creditor’ approach the company through the liquidator for compromise or arrangement by making proposal of payment to all the creditor(s), the Liquidator on behalf of the company will move an application under Section 230 of the Companies Act, 2013 before the Adjudicating Authority i.e. National Company Law Tribunal. On failure, steps should be taken for outright sale of the ‘Corporate Debtor’ so as to enable the employees to continue.
